The Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama has said that the Commission’s approach to Digital Asset Regulation recognizes the potential of blockchain and digital assets to revolutionize the capital markets and shape the Nigerian economy.
Agama spoke while delivering a keynote Address at the Businessday Blockchain Conference 2024, with the Theme: Building Africa’s Future: Harnessing Blockchain for Economic and Social Transformation.
He said Blockchain technology has moved beyond being a mere buzzword; it is becoming an essential part of the global financial and economic ecosystem.
Its decentralized, transparent, and secure nature has led to innovations in various sectors—ranging from finance to supply chains, healthcare, and governance.
The DG said in Africa, where there are significant issues such as financial exclusion, lack of transparency, and inefficiencies in public and private sectors, blockchain presents an opportunity to build a future where these challenges are addressed.
“Blockchain is a digital ledger technology that securely records and verifies transactions across a network of computers.
Each transaction is grouped into a block, and these blocks are linked together in a chronological chain.
This structure ensures that once information is added to the blockchain, it cannot be altered or deleted, providing a transparent and tamper-proof record.
He said, “Essentially, blockchain is a decentralized system that enhances trust and security by allowing multiple parties to independently verify and validate transactions without needing a central authority.
“These programs foster innovation while ensuring that robust consumer safeguards are in place. The recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programs is a testament to our commitment to enabling innovation.
“Our regulatory stance is clear, digital assets such as cryptocurrencies are classified as securities unless proven otherwise. We have established a registration framework that requires issuers and sponsors to prove their assets do not qualify as securities.
“This ensures that investor protection and market integrity are upheld while providing a level playing field for legitimate market participants,” he said.
Furthermore, the SEC DG said the Commission is consistently aligning with international best practices by collaborating with global regulatory bodies such as the International Organization of Securities Commissions (IOSCO).
He added that this ensures that the Commission’s regulatory framework remains robust, adaptive, and aligns with global standards, enabling cross-border collaboration and fostering investor confidence.
ENDS